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Carnival Corporation projects 20% earnings growth in 2025

Published 20/12/2024, 14:18
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MIAMI - Carnival Corporation (LON:CCL) & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest cruise operator, reported robust financial results for the fourth quarter and full year of 2024. The company announced record revenues, net income, and adjusted EBITDA for the full year, surpassing its September guidance and previous year's performance.

The full year 2024 saw revenues reach an unprecedented $25 billion, a 15 percent increase over the previous year. Net income for the year was $1.9 billion, with an adjusted net income of the same amount, which was $130 million above the September forecast. The adjusted EBITDA of $6.1 billion represented a significant 40 percent increase over the prior year, while operating income soared to $3.6 billion, an 80 percent jump from the previous year.

For the fourth quarter, Carnival (NYSE:CCL) achieved a net income of $303 million, with adjusted net income at $186 million, exceeding the September guidance by $126 million. This performance was attributed to higher ticket prices, increased onboard spending, and improved cost management. Adjusted EBITDA for the quarter reached a record $1.2 billion, 29 percent higher than in 2023.

The company's cumulative advanced booked position for the full year of 2025 is at an all-time high in terms of both price and occupancy. The adjusted EBITDA per available lower berth for 2025 is expected to be the highest in nearly two decades, with the company anticipating to achieve its 2026 SEA Change EBITDA target a year ahead of schedule.

Carnival Corporation's Chief Executive Officer, Josh Weinstein, highlighted the strong finish to 2024 and the company's ability to outperform initial guidance. He also mentioned ongoing efforts to enhance destination strategy and increase global awareness for cruise travel.

For 2025, Carnival expects net yields to be approximately 4.2 percent higher than 2024 based on continued demand strength. Adjusted net income is projected to be over 20 percent higher than in 2024, amounting to approximately $2.3 billion. The company also anticipates adjusted EBITDA to increase by about $500 million compared to 2024, and an adjusted return on invested capital of approximately 11.7 percent.

Carnival Corporation's financial activities included making debt prepayments of $3.3 billion during 2024, reducing its debt balance by over $8 billion from its peak in January 2023. The company ended the year with $27.5 billion of debt and has scheduled debt maturities of $1.5 billion for 2025 and $2.7 billion for 2026.

This news is based on a press release statement from Carnival Corporation & plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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